Debtor country:
Terms:
Treatment date:
Status of the treatment:
Supporting agreements with the international institutions:
IMF program approved on March 18, 1998
Amounts treated:
$213 million
Categories of debt treated:
Treatment of arrears as of February 28, 1998
Treatment of maturities falling due from March 01, 1998 up to February 28, 2001
Repayment profile:
Treatment under Naples terms (cancellation rate of 67%)
- repayment of non ODA credits over 23 years, with 6 years of grace, after cancellation to a rate of 67%
- repayment of ODA credits over 40 years with 16 years of grace
Specific provisions:
Possibility to conduct debt swaps
On a voluntary and bilateral basis, the Government of each participating creditor country or its appropriate institutions may sell or exchange, in the framework of debt for nature, debt for aid, debt for equity swaps or other local currency debt swaps : (i) the amounts of outstanding loans [treated in the present Agreed Minute] as regards Official Development Aid loans ; (ii) the amounts of other outstanding credits, loans and consolidations [treated in the present Agreed Minute], up to 20% of the amounts of outstanding credits as of December 31, 1991 or up to an amount of 15 million SDR, whichever is higher
Entry-into-force provision
Agreement implemented on August 18, 1998
Good will clause
In response to the request of the representatives of the Government of the Republic of Nicaragua :
a) the Participating Creditor Countries agreed in principle to hold a meeting to consider the matter of the Republic of Nicaragua's debt service payments falling due after February 28, 2001 and relating to loans or credits pursuant to a contract or other financial arrangement concluded before November 1, 1988 provided :
- that the Republic of Nicaragua continues to have an appropriate arrangement with the International Monetary Fund ;
- that the Republic of Nicaragua has reached with other creditors effective arrangements meeting the conditions described in [the present Agreed Minute]and has reported in writing to the Chairman of the Paris Club, pursuant to [the present Agreed Minute] ;
- and that the Republic of Nicaragua has complied with all conditions set out in this Agreed Minute.
b) Alternatively, if during the three years following the date of the signature of the present Agreed Minute, the Government of the Republic of Nicaragua has maintained satisfactory relations with the Participating or Observer Creditor Countries, and notably has fully implemented all agreements signed with them and continues to have an appropriate arrangement with the International Monetary Fund, the Participating Creditor Countries agree in principle to hold a meeting to consider the matter of the Republic of Nicaragua's stock of debt.
Free transferability provision
The Government of the Republic of Nicaragua guarantees the immediate and unrestricted transfer of the foreign exchange counterpart of all amounts paid in local currency by the private debtors in Nicaragua for servicing their foreign debt owed to or guaranteed by the Participating or Observer Creditor Countries or their appropriate institutions, for which the corresponding payments in local currency have been deposited in the Central Bank of Nicaragua on or after December 31, 1991.
Pullback clause
The Participating Creditor Countries reserve the right to review and agree to the implementation of the conditions stated [...] for the comparability of treatment between all creditor countries. If the Participating Creditor Countries determine that these conditions are not substantially fulfilled, and do not agree to their implementation, the provisions [...] of the present Agreed Minute will become null and void. In this case, the total amount of debts covered by the present Agreed Minute will be due and payable at that time, with the exception of maturities which have not yet fallen due on these debts. Any payments of principal and interest already made under Article II paragraph 2. will be taken into account.
Phases
- First phase : From March 01, 1998 up to February 28, 1999, implemented on August 18, 1998
- Second phase : From March 01, 1999 up to February 28, 2000, implemented on September 21, 1999
- Third phase : From March 01, 2000 up to February 28, 2001, implemented on February 21, 2001
De minimis threshold of 750 000 SDR
Payment of non-consolidated amounts before July 31, 1998
Comparability of treatment provision:
In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Republic of Nicaragua commits itself to negotiate debt reorganization arrangements with all its external creditors providing for comparable debt reduction in net present value as well as comparable terms of repayment of the debts not cancelled.
The Government of the Republic of Nicaragua commits itself not to accord any category of creditors -and in particular creditor countries not participating in the present Agreed Minute, commercial banks and suppliers- a treatment more favourable than that accorded by the Participating Creditor Countries for credits of comparable maturity and legal nature.
The Government of the Republic of Nicaragua will inform in writing the Chairman of the Paris Club not later than September 30, 1998 of the status of its negotiations and of the contents of its bilateral agreements with other creditors. The Government of the Republic of Nicaragua will further regularly inform in writing the Chairman of the Paris Club of the status of its negotiations with other creditors, as well as of the payments made to them, and in any case before the meeting mentioned in [the present Agreed Minute].
Cut-off date:
November 01, 1988
Organisation of the session:
Have attended:
Observers (countries):
Observers (institutions):
